Samsung Could Introduce Refurbished Smartphone Program to Offer Flagships at Cheaper Cost
We can all agree that smartphones are getting better to the point that mid-ranged devices are starting to ooze with premium build quality and top-notch hardware specifications. Samsung currently, is the top purveyor of Android smartphones, but its flagship handsets are not cheapest bundle of joy you can purchase, even if you get it from a carrier. Realizing this, it’s possible that the South Korean giant might be rolling out a refurbished smartphone program in order to cater to consumers who want to own a flagship, but aren’t keen enough to shell out a ton of money.
Samsung Set to Drive Momentum and Fortune in Its Favor With the Introduction of a Refurbished Smartphone Program
Samsung might have had a terrific run with the announcement of Galaxy S7 and Galaxy S7 edge, but with the smartphone market shrinking globally, it’s time to introduce something that will be more along the lines of what consumers in emerging markets are more attracted towards. In order to do this, sources close to the matter have stated that Samsung wants to maximize its cost efficiency and keep operating margins above 10 percent.
Here’s how the refurbished program is going to work. Initially, Samsung will sell high-end refurbished phones returned to the company by users who signed up for one-year upgrade program in markets such as South Korea and the United States. Afterwards, Samsung would then re-sell these phones at a lower price. As for the rest of the details, they currently remain in the dark, as the company and the individuals involved with its daily operations have not commented how large the discount is going to be. They also didn’t comment if Samsung is going to expand this particular operation to other markets or not.
To be honest, introducing this program in emerging markets such as countries in Asia will drive a ton of momentum to Samsung’s sales. Most markets often re-sell carrier unlocked phones at cheaper prices so a larger consumer base are able to afford it. However, if Samsung is to introduce such a program, then ‘after sales’ service is going to have to be pristine. In majority of the cases, used handsets carry a 3-month warranty, so perhaps Samsung could try to extend that warranty period in order to leverage sales.
What sort of direction do you guys believe Samsung should take if it is to drive a ton of sales through its refurbished smartphone program? Tell us your thoughts right away.